Bill Text: OR SB310 | 2013 | Regular Session | Introduced

Oregon Senate Bill 310 (Prior Session Legislation)

Bill Title: Relating to apportionment of corporate income; prescribing an effective date.

Sponsorship: Committee Bill

Status: (Failed) 2013-07-08 - In committee upon adjournment. [SB310 Detail]

Download: Oregon-2013-SB310-Introduced.html



     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 1706

                         Senate Bill 310

Printed pursuant to Senate Interim Rule 213.28 by order of the
  President of the Senate in conformance with presession filing
  rules, indicating neither advocacy nor opposition on the part
  of the President (at the request of Senate Interim Committee on
  Finance and Revenue)

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Modifies methods for calculating numerator used in
apportionment of business income for purposes of corporate excise
taxation. Requires sales of all members of unitary group of
corporations to be included in numerator of Oregon apportionment
percentage if any member is taxable in state.
  Applies to tax years beginning on or after January 1, 2014.
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to apportionment of corporate income; creating new
  provisions; amending ORS 317.715; and prescribing an effective
  date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 317.715 is amended to read:
  317.715. (1) If a corporation required to make a return under
this chapter is a member of an affiliated group of corporations
making a consolidated federal return under sections 1501 to 1505
of the Internal Revenue Code, the corporation's Oregon taxable
income shall be determined beginning with federal consolidated
taxable income of the affiliated group as provided in this
section.
  (2) If the affiliated group, of which the corporation subject
to taxation under this chapter is a member, consists of more than
one unitary group, before the additions, subtractions,
adjustments and modifications to federal taxable income provided
for in this chapter are made, and before allocation and
apportionment as provided in ORS 317.010 (10), if any, modified
federal consolidated taxable income shall be computed. Modified
federal consolidated taxable income shall be determined by
eliminating from the federal consolidated taxable income of the
affiliated group the separate taxable income, as determined under
Treasury Regulations adopted under section 1502 of the Internal
Revenue Code, and any deductions or additions or items of income,
expense, gain or loss for which consolidated treatment is
prescribed under Treasury Regulations adopted under section 1502
of the Internal Revenue Code, attributable to the member or

members of any unitary group of which the corporation is not a
member.
  (3)(a) After modified federal consolidated taxable income is
determined under subsection (2) of this section, the additions,
subtractions, adjustments and modifications prescribed by this
chapter shall be made to the modified federal consolidated
taxable income of the remaining members of the affiliated group,
where applicable, as if all such members were subject to taxation
under this chapter. After those modifications are made, Oregon
taxable income or loss shall be determined as provided in ORS
317.010 (10)(a) to (c), if necessary.
  (b) In the computation of the Oregon apportionment percentage
for a corporation that is a member of an affiliated group filing
a consolidated federal return, there shall be taken into
consideration only the property, payroll, sales or other factors
of those members of the affiliated group whose items of income,
expense, gain or loss remain in modified federal consolidated
taxable income after the eliminations required under subsection
(2) of this section.   { - Those members of an affiliated group
making a consolidated federal return or a consolidated state
return shall not be treated as one taxpayer - }  For purposes of
determining whether any member of   { - the - }   { + an
affiliated + } group is taxable in this state or any other state
with respect to questions of jurisdiction to tax or the
composition of the apportionment factors used to attribute income
to this state under ORS 314.280 or 314.605 to 314.675  { - . - }
 { + , those members of an affiliated group making a consolidated
federal return or a consolidated state return may not be treated
as one taxpayer, but the property, payroll, sales or other
factors of all members of a unitary group shall be included in
the numerator of the Oregon apportionment percentage if any
member of the group is taxable in this state. + }
  SECTION 2.  { + The amendments to ORS 317.715 by section 1 of
this 2013 Act apply to tax years beginning on or after January 1,
2014. + }
  SECTION 3.  { + This 2013 Act takes effect on the 91st day
after the date on which the 2013 regular session of the
Seventy-seventh Legislative Assembly adjourns sine die. + }
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